Mortgage redemption or cancellation insuranceis a type ofdecreasing term life insurancedesigned to pay off a mortgage balance if the insured dies. The death benefit decreases over time, matching the declining mortgage balance, while premiums typically remain level, making it cost-effective for this purpose.
Option A: Incorrect. Increasing term insurance has a rising death benefit, unsuitable for mortgage protection.
Option B: Correct. Decreasing term insurance aligns with the declining mortgage balance.
Option C: Incorrect. Whole life provides permanent coverage with cash value, not specific to mortgage payoff.
Option D: Incorrect. Universal life is flexible permanent insurance, not typically used for mortgage redemption.
This question falls under the Prometric content outline section on “Life Products,” which covers types of term life insurance.
[:, Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section: General Knowledge – Life Insurance)., Oklahoma Insurance Department, Title 36 O.S. § 4002 (life insurance products)., Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing., ]
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